The product will incentivise and reward good driving, as well as green choices made by motorists
Covéa Insurance and Vitality have today (16 June 2021) launched a new direct-to-consumer car insurance proposition, which incentivises and rewards good driving as well as motorists who make greener choices.
The product, VitalityCar, is an extension of Vitality’s Shared Value insurance model, which uses incentives and rewards to promote positive behaviour change - currently, this approach is used for members within its health and life insurance and investment businesses.
At the heart of the product is access to the Good Driving Programme, which is designed to help drivers improve five key behaviours that contribute to half of all road accidents. In turn, this will then help them to better control their insurance costs.
These key behaviours are harsh acceleration, harsh braking, harsh cornering, distracted driving and speeding.
James Gearey, managing director of personal lines and protection at Covéa Insurance, said: “Our partnership with Vitality is a major milestone for our business strategy and technology road map.
“It is also a really exciting development for the wider insurance market.
“The regulatory environment is changing, as are customer needs – we have to evolve and innovate to make sure we deliver products that provide value and allow consumers the choice to live their lives in the way that they want.”
Incentivising behaviour change
As an additional incentive within the product, Vitality will offset up to 100% of the carbon emissions from each trip depending on how well a motorist drives.
Plus, motorists showcasing good driving will unlock weekly rewards from Caffé Nero and Rakuten movie rental, for example.
Drivers demonstrating the safest driving behaviours, as defined by the programme, will also have the opportunity to reduce their excess by £250 and receive a no-increase guarantee at renewal.
Andrew Webb, managing director of VitalityCar, added: “Vitality was founded on the simple belief that people can be incentivised to change their behaviour and by rewarding them for doing so, it creates a virtuous circle of improvement.
“We are now applying our Shared Value insurance model to car insurance with a dynamic product that consistently encourages and reinforces good driving, rewarding members for driving safely and for making choices that are better for the environment.”
Covéa Insurance is the UK underwriting business of French mutual insurance group Covéa.
Vitality is part of Discovery Limited, a worldwide insurer and investment manager with more than 20m members in 27 markets worldwide.
Vitality pioneered the Shared Value insurance model, which is based on the principles of behavioural economics.
No comments yet